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Flipkart co-founder Sachin Bansal quits after Walmart deal

May 11, 2018 15:29 IST
Flipkart co-founder Sachin Bansal quits after Walmart deal

Flipkart co-founder Sachin Bansal announced his exit from the company on May 9, 2018, hours after the news of American retailer Walmart acquiring Flipkart broke in the nation.

Bansal stated in a post on social media that it was time for him to hand over the baton and move on.

“Flipkart truly upheld audacity and customer centricity and I got to work with the best people. We took on some of the biggest challenges and solved many complex problems for India,” he said. He added saying, “sadly my work here is done and after 10 years, it’s time to hand over the baton and move on from Flipkart but I’ll be watching and cheering from the outside — Flipsters, you better continue to do a good job!”

Looking ahead, Sachin plans to take time off to finish personal projects, catch up on gaming and brush up on his coding skills. Binny Bansal, on the other hand, will retain his 5.5 per cent stake in the company and remain Flipkart Group CEO. Kalyan Krishnamurthy will also continue as CEO of Flipkart.com.

About Sachin Bansal

Born on August 5, 1981, Bansal is an Indian Software engineer and Internet entrepreneur.

He along with Binny Bansal, both IIT graduates founded India's largest e-commerce platform Flipkart as an online bookstore in 2007. Though they share the same surname, the two are not related.

Before Flipkart, both Sachin and Binny worked with Amazon India as software engineers but they decided to leave within a short span of time to start something of their own.

Though initially they thought of starting a comparison search engine, but the realised that the market for e-commerce in India was very small.

The two IITians launched Flipkart from an apartment in Bangalore with 4, 00,000 rupees cash.

During the early days of Flipkart, Sachin and Bansal used to deliver books across Bengaluru on their scooters.

Sachin was removed as a CEO of Flipkart based on performance ground in August 2016.

 

Video: Check out the latest current affairs of this week



About Flipkart’s Acquisition

Walmart, one of the world’s largest multinational retailers acquired Indian e-commerce platform Flipkart in a $16 billion deal on May 9, 2018.

The US-based company bought 77 per cent stake in Flipkart from the existing shareholders including Japan’s Softbank Group.

The deal is the biggest merger and acquisition in India so far and marks the entry of Walmart into the Indian retail business.

With 77 per cent stakes, Walmart will have the controlling rights in Flipkart.

As a part of Walmart’s condition that it could accommodate only one of the Flipkart founders in the board, Sachin Bansal has resigned, selling his 5.5 per cent stake for a little over Rs 6,700 crore (about $1 billion).

The other co-founder, Binny Bansal, however, would be staying back and will be a part of the board along with Flipkart CEO Kalyan Krishnamurthy.

Walmart buys 77 percent stake in Flipkart: Here are Top 10 takeaways

Major Acquisitions of Flipkart

  • In May 2014, Flipkart acquired online fashion retailer Myntra for ₹20 billion (US$310 million).
  • In 2016, Flipkart acquired the online fashion retailer Jabong.com from Rocket Internet for US$70 million.
  • In April 2016, Flipkart acquired the UPI mobile payments startup PhonePe, an online mobile payment company founded by Flipkart’s ex-employees for an undisclosed amount.
  • In August 2017, eBay India was bought out for $211 million by Flipkart. After the merger, eBay Inc received 5.4 per cent stake in Flipkart.
  • In July 2017, Flipkart made an offer to acquire its main domestic competitor, Snapdeal, for around US$700-800 million. However, it was rejected by the company, which was seeking at least US$1 billion.

Read More Current Affairs

Quick Digest

Who: Flipkart co-founder Sachin Bansal

What: Resigns

When: May 9 , 2018

Is this article important for exams ? Yes

DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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